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Pakistan–Afghanistan bilateral trade plunges 53% in first half of fiscal year

The steep drop is largely attributed to the closure of key crossings following clashes on October 11, which disrupted trade flows between the two neighboring countries.

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Bilateral trade between Pakistan and Afghanistan declined sharply by 53 percent during the first half of the current fiscal year (July–December 2025–26), falling from $1.26 billion to $594 million, according to a report by Pakistani newspaper The Nation.

The steep drop is largely attributed to the closure of key crossings following clashes on October 11, which disrupted trade flows between the two neighboring countries.

During the period under review, Pakistan’s exports to Afghanistan fell by 55 percent, dropping from $754 million to $336 million. Imports from Afghanistan also registered a significant decline, falling by 49 percent to $258 million.

Earlier, Afghanistan’s Deputy Prime Minister for Economic Affairs, Mullah Abdul Ghani Baradar, said the country had expanded economic engagement with other regional partners amid the crossing closures. He stressed that trade with Pakistan would resume only if permanent assurances were provided to keep trade routes open.

The sharp contraction underscores growing strains in Pakistan–Afghanistan trade relations and highlights the economic impact of prolonged crossing disruptions.

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UNHCR launches largest carpet-weaving centre in western Afghanistan

Over the past year, some 2 million Afghans have returned from Iran, highlighting the urgent need for economic opportunities, especially for women, said UNHCR.

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The UNHCR, in collaboration with the Islamic Development Bank, on Wednesday inaugurated the largest carpet-weaving center in western Afghanistan’s Herat province.

The initiative, attended by UN Deputy Special Representative Indrika Ratwatte and local community leaders, will support 400 returnees, with more than three-quarters of them women, providing livelihoods and skills training.

The centre aims to empower returnees and host communities, helping them rebuild sustainable livelihoods, a priority need identified by Afghans returning from Iran.

Over the past year, some 2 million Afghans have returned from Iran, highlighting the urgent need for economic opportunities, especially for women, said UNHCR.

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Uzbekistan ratifies preferential trade agreement with Afghanistan

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Uzbekistan’s President Shavkat Mirziyoyev has officially ratified the Preferential Trade Agreement (PTA) between Uzbekistan and Afghanistan.

The agreement was first signed on 10 June 2025 during the Tashkent International Investment Forum by Uzbekistan’s Minister of Investment and Foreign Trade Laziz Kudratov and Afghanistan’s Minister Nuriddin Azizi, Uzbekistan Daily reported.

The PTA eliminates tariffs on 14 categories of goods, simplifies the issuance of phytosanitary permits for Afghan agricultural products, and introduces additional support measures for Uzbek exporters.

In February 2026, Uzbekistan’s Deputy Prime Minister Jamshid Khodjaev held online talks with Azizi to accelerate the agreement’s entry into force, advance investment projects, and promote industrial cooperation. A new joint business forum is planned to take place in Kabul after the conclusion of Ramadan.

The agreement is expected to strengthen bilateral trade, boost economic ties, and create new opportunities for Afghan businesses and exporters.

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Afghanistan steps in to replace Iran in supplying fruits and vegetables to Russia

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Afghanistan is preparing to increase exports of fruits and vegetables to Russia following a temporary ban by Iran on food exports, Russian media reported citing Rustam Khabibullin, head of the Russian Business Center in Afghanistan.

On March 3, the Iranian government announced an indefinite suspension of all food and agricultural exports to prioritize domestic food security amid ongoing regional conflict. Goods that were previously destined for Russian retailers are now being redirected to Iranian state reserves.

In response, Afghanistan has already dispatched its first shipment of 100 tons of apples to Russia. Shipments of peppers, dried fruits, nuts, celery, zucchini, eggplant, citrus, berries, herbs, and melons are being prepared for delivery in the coming weeks. Khabibullin noted that demand from Russia is growing, and Afghan exporters aim to meet the rising requests to prevent shortages and stabilize prices for consumers.

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